Author Topic: Prosper lowers interest rates AND effective yield  (Read 3057 times)

Peter

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Prosper lowers interest rates AND effective yield
« on: October 19, 2012, 12:35:40 PM »
Take a look at these two loans:
https://www.prosper.com/invest/listing.aspx?listingID=649089
https://www.prosper.com/invest/listing.aspx?listingID=656331

The first one was from October 4th and the second one October 18th. They are both 5-year C-grade loans with a Prosper Score of 8. In the second one the interest rate has dropped by 1% but more interestingly the Effective Yield has gone done 2%. I am going to try and dig a bit further and see if I can come up with an explanation here.

Has anyone else noticed the interest rate changes?
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investforfreedom

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Re: Prosper lowers interest rates AND effective yield
« Reply #1 on: October 24, 2012, 12:54:26 PM »
I didn't notice it until you brought this one up.  Is it because of the different loan size?

Peter

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Re: Prosper lowers interest rates AND effective yield
« Reply #2 on: October 24, 2012, 02:02:10 PM »
No. Rates don't vary by loan size on Prosper - it is because they have changed their algorithm and pricing. This change has been made across the board on many loan grades.
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Wrats6

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Re: Prosper lowers interest rates AND effective yield
« Reply #3 on: October 24, 2012, 05:30:57 PM »
I haven't noticed but good catch Peter.  Please let us know what you find out.

Peter

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Re: Prosper lowers interest rates AND effective yield
« Reply #4 on: October 25, 2012, 06:07:27 PM »
I am going to be in San Francisco a week from Monday and have meeting all afternoon at Prosper - I will ask them about this and report back.
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